Question: Which type of real estate loan would be best for a borrower who plans to hold a property for approximately six years, understands the benefits of leverage, and prefers predictable payment? The borrower has a good credit score, $40,000 available for a down payment and is interested in a $275,000 property. The borrowers DTI will allow qualification for conventional or FHA financing. Answer 90% conventional 30 yr fixed rate at 5.25%, 1 point MOST lenders don’t really offer or like to offer anything under 90 LTV Borrower avoids PMI
